Law:

Section:

2007] 293 ITR 192 [2008] 173 TAXMAN 67 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Commissioner of Income-tax, Patiala v. Ashoka Steel Industries & Flour Mills* M.M. KUMAR AND RAJESH BINDAL, JJ. IT REFERENCE NO. 43 OF 1990 â-  FEBRUARY 1, 2007 Section 40A(3) of the Income-tax Act, 1961, read with rule 6DD of the Income-tax Rules, 1962 - Business disallowance - Cash payment exceeding prescribed limits - Assessment year 1980-81 - Assessee claimed expenditure of Rs. 35,800 on account of purchases made in cash which were disallowed by Assessing Officer under section 40A(3) - Commissioner (Appeals) allowed assessee's claim - On revenue's appeal, Tribunal recorded finding of fact that assessee used to purchase coal from truck owners in cash, as they generally did not have any bank account and further, amount was paid beyond banking hours because coal was in short supply those days - Tribunal accepted assessee's explanation in terms of rule 6DD and upheld order of Commissioner (Appeals) - Whether Tribunal was right in holding that provisions of section 40A(3) were not applicable - Held, yes Yogesh Putney for the Respondent. ORDER Rajesh Bindal, J. - The Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh ('the Tribunal') has referred under section 256(1) of the Income-tax Act, 1961 the following question of law which emerges from its order dated 22-8-1988 in ITA No. 924/Chandi./84 for the assessment year 1980-81 :- "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in upholding the order of the CIT(A) with regard to the holding that the provisions of section 40A(3) were not applicable to the said addition of Rs. 35,800." 2. Facts as noticed by the Tribunal in the statement of case are that assessee has claimed expenditure of Rs. 35,800 on account of purchase made in cash, which were disallowed by the Assessing Officer under section 40A(3) of the Income-tax Act, 1961 ('the Act') as the Assessing Officer was not satisfied with the reasons given by the assessee for non-compliance of provisions of section 40A(3) of the Act. In appeal the assessee succeeded in persuading the Commissioner…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492